Ørsted has decided to sell half of its stake in the Gode Wind 3 Offshore Wind Farm in Germany to Glennmont Partners, a subsidiary of Nuveen. This particular wind farm has a capacity of 253 MW, and Ørsted secured it in two separate phases in 2017 and 2018. At present, the construction of this project is ongoing and is located near another project, the Borkum Riffgrund 3 Offshore Wind Farm. Interestingly, both Ørsted and Glennmont have a 50% share in that project as well.
In terms of finances, the deal for the Gode Wind 3 has been finalized at EUR 473 million. Breaking down this figure, it comes to a value of 3.8 times for each MW of power the wind farm can produce. This valuation is notable as it's the highest seen for any wind farm transaction in Germany for this year.
Another transaction with a similar transaction mutiple worth mentioning took place earlier in 2023. Masdar acquired a 49% stake in the Baltic Eagle offshore wind farm, which has a capacity of 476 MW, for $862 million. This acquisition, much like the one by Ørsted, indicates the steady interest companies have in offshore wind energy assets.
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The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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